COLUMBIA - Gov. Mark Sanford delivered a slimmed down version of his agenda in his fifth State of the State address Wednesday night that focused on limited spending, government restructuring and economic initiatives to make South Carolina more competitive.

Behind the scenes, the Republican governor acknowledged that change takes cooperation with the Legislature but said he is not willing to compromise on the promises he made to the state's 4 million residents.

To legislators, Sanford threw out the olive branch, and it was hard to find a dissenting voice after the speech. Influential lawmakers, including House Speaker Bobby Harrell, have taken issue with the governor's perceived attacks on the General Assembly in the past four years, but Sanford made it clear that he has learned some political lessons.

"I've come to learn in amazingly concrete terms over the last four years that in South Carolina the governor can propose, but that it is up to the legislative branch to dispose," he said. "Change is truly in your hands."

After the address, there was optimism in both parties.

"It's a new four years," said Sen. Brad Hutto, D-Orangeburg. "The Democrats are putting forward a plan on middle-class values, and some of what the governor said falls right into that. He seemed to recognize that we need to work together. Before, it's always been my way or the highway."

However, Sen. John Land, D-Manning, a frequent critic of the governor's, wasn't short on words.

"He talks in general terms," Land said of Sanford. "He basically comes out with an idea, but he doesn't give us any details. He speaks in philosophical terms, and we're down here where the rubber meets the road."

In his 22-page address, Sanford zeroed in on many of the issues important to Democrats, although his methods of reaching the goals in his next four years are different. The 41-minute address, which sounded similar to the one Sanford delivered in his first year, was colored with jokes and stories that made the assembly laugh out loud.

Sanford talked about his time in Congress and a trip to the movie theater with fellow lawmakers when he tried to save money on a combo deal with just one drink and three straws.

"You know me and a dollar," he said.

Senate President Pro Tem Glenn McConnell, R-Charleston, said the tone of the entire address was friendly.

"The whole speech centered on personal choice and personal empowerment," he said. "He was reaching out to create opportunity."

Sanford backed away from early proposals, such as revamping higher education in the state by eliminating duplication, but he called on the Legislature to help him achieve his most significant objectives.

Sanford still is fighting for government restructuring by putting more authority in the executive branch, a move he said will modernize government and make the state more competitive in a global economy.

On Tuesday, a Senate committee moved legislation in place for a possible vote next week on whether to do away with the election of statewide offices, including the secretary of state and superintendent of education, and to make those positions gubernatorial appointments. If the proposals pass the Legislature, then the voters will decide the issue in 2008 ballot questions.

Democrats are ready to take steps to modernize state government, but they do not want the lack of past reform used as a scapegoat for a lack of progress, said Sen. Vincent Sheheen, D-Camden.

On the matter of economic "soil conditions," Sanford said the state needs to take steps toward making South Carolina more attractive to businesses and therefore more competitive. He proposed change in the workers' compensation system and health care reform so premiums are more affordable for small businesses.

The governor also wants to increase the state's lowest-in-the-nation cigarette tax by 30 cents per pack, bringing it to 37 cents. He wants to use that money, coupled with annual surplus revenue, to pay for $205 million in income tax cuts.

The battle will be over whether to use an increase for that purpose or to fund health care for low-income children and small business. Democrats also think any future tax cut should benefit the middle class.

Sanford also addressed spending, one of the most contentious issues in his last term.

"It isn't just about sustainable spending," he said. "It is also about change."

His executive budget, which serves as a proposal for the Legislature's upcoming version, increases spending by population and inflation and includes $439 million to be used toward previously unfunded health care liabilities.

The governor also touched on a number of other issues, such as improving the quality of life in the state by strengthening penalties for drunken driving and fixing problems with coastal insurance to make it affordable. Sanford also talked about school choice but did not name specifics and called for school district consolidation so there is no more than one per county.

"The governor's tone was very much one of reaching out to the General Assembly," said House Majority Leader Jim Merrill, R-Daniel Island. "He narrowed his scope and framed his goals in realistic and achievable terms."

Relationships and cooperation are the keystones in politics, said Harrell, R-Charleston.

"My top priority is us all working together," he said. "If we get that accomplished, then we'll get a lot of things done."

Sanford said that although he's had moments of frustration in the past four years, he acknowledged the way politics in South Carolina work.

"It has been with starts and stops, at times it has been contentious, and all of those things come with change."

The issues

During his annual State of the State address, Gov. Mark Sanford asked lawmakers to consider the following issues during this year's legislative session:

--Restructuring state government to increase accountability, including allowing the governor to make appointments to statewide offices such as superintendent of education. Sanford also wants to consolidate health care agencies and dissolve the Budget and Control Board and replace it with a new department under gubernatorial authority.

--Improving economic "soil conditions" by undertaking initiatives to make the state more competitive in a global marketplace.

--Limiting spending by allowing government to grow by an amount no greater than population and inflation in a given year.

--Addressing quality-of-life issues such as updating drunken driving laws and strengthening penalties.

On the web

Read the text of Gov. Mark Sanford's State of the State address and the Democrats' response by state Sen. Vincent Sheheen

Reach Yvonne M. Wenger at ywenger@postandcourier.com or 803-799-9051.